Piles of paper in your home can be very bothersome. However, you should avoid throwing away all of your papers since some may be needed in the future. Do you know how long to keep important papers? Keep these guidelines in mind to ensure that you do not throw away any important documents.
- Tax documents – you should keep all of your tax documents, including receipts and W-2 forms for at least seven years. The IRS has up to six years to audit your taxes if they think that you have underreported your income.
- Investment records – as long as you own the securities, you should keep any investment records. Even after you sell any investments, you should keep any records for at least seven years in case you have to prove capital losses and gains.
- Bank statements – you can throw away your back statements each month. You should only keep them long enough to check the accuracy of your account. If you accidently throw them away, they will be available online through your bank.
- Retirement plan statements – typical retirement plan statements should be kept for one year. If you have a Roth IRA, keep all statements until you retire so that you can prove that you have already paid all taxes on your contributions.
- Credit card statements – shred all of your credit card statements as soon as you check the accuracy. Credit card statements are one of the easiest ways for thieves to steal your identity. If you accidently throw them away before you are able to check the accuracy, they will be available online.
Having the right insurance policies is the best way to ensure that you have the right amount of coverage in case of any unfortunate situation with all of your important documents. Contact the insurance professionals at the Insurance Agency of Dean Davis in Austin, Texas for all of your insurance needs.